Costs Soar at Aker BP’s Biggest North Sea Projects

By Charles Kennedy - Oct 07, 2026

The cost of Aker BP’s two major Norwegian oil and gas developments has climbed sharply, although both projects remain on track to begin production in 2027.

Norway’s latest fiscal budget estimates the cost of the Yggdrasil development at NOK 195 billion ($20.4 billion), up 9.8% from NOK 177.6 billion a year ago. The project was originally expected to cost NOK 120.8 billion when approved in 2023.

Costs at Valhall PWP-Fenris have risen even faster, climbing 23% from last year’s estimate to NOK 93.4 billion. The original estimate was NOK 52.9 billion.

Aker BP had already flagged the increases in July, citing higher construction estimates and additional resources needed to protect the 2027 start-up schedule. The scope of both developments has also expanded.

Yggdrasil, currently the largest development underway on the Norwegian Continental Shelf, comprises the Hugin, Fulla and Munin areas and extensive new offshore and subsea infrastructure. Aker BP currently estimates the area contains around 700 million barrels of oil equivalent in recoverable resources, with further exploration upside.

Meanwhile, Valhall PWP-Fenris will add a new production and wellhead platform at Valhall and connect the Fenris gas field through a 50-kilometer tie-back. Aker BP says the development will more than double Valhall’s gas-processing capacity and increase exports to Europe through the Norpipe system.

The company has expanded the Valhall-Fenris drilling program with five additional wells, expected to add 30–35 million barrels of oil equivalent of recoverable resources.

Despite the cost escalation, both developments remain scheduled for first production in 2027.